Global Valve and Controls

Hiring in the oil crisis

Oil has been low for about a year now and it will continue to be stable till maybe the year 2020 researchers predict. This information doesn’t necessarily mean it will become harder for more and more workers to find jobs, but what it does mean is that even there many companies are laying off, they are still hiring for new talent. Companies such as Chevron, “has maintained a robust recruitment program, despite falling oil prices that have battered the industry.”

Southwestern Energy Co., another example,” While some industry veterans may worry that companies are searching for younger and cheaper replacements amid a slump that has pinched budgets across the industry, McCauley said recruitment doesn’t have to displace existing workers.” These two companies are just two examples, as there are many others that are hiring for new talent to keep up with business.

As employees working for energy companies watch the flurry of layoff announcements with trepidation, their best strategy is to work hard to better themselves and the company — figure out ways to leverage the crisis to create opportunities — rather than “hunkering down and just trying to survive


Abandoned wells leaking methane

Recently, a new scientific study has shown that fracking is now causing the nearby wells to leak methane gas. The news came when researchers at the University of Vermont began to examine the underlying effects of drilling in the Marcellus shale reservoir.

It said oil and gas companies could reduce the probability of triggering methane leaks by seeking to identify the locations of abandoned wells before any new fracking, a potentially daunting task given the large number of unmarked abandoned wells across the country

New York had banned fracking earlier this year as there were many concerns that fracking was causing polluted drinking water.

Methane warms the climate 80 times more than the same amount of carbon dioxide. The EPA earlier this year proposed new standards that would be able to cut greenhouse gas emissions in half.


New oil discoveries in the Arctic

Earlier this year, we blogged about an article where millions and billions of oil reserves were discovered in Siberia, well who would have figured out that there was also billions of oil in the Arctic?

According to preliminary estimations, the Arctic reserves have nearly 100 billion tons of fuel, Alexei Kontorovich, Director of the Institute of Petroleum Geology and Geophysics of the Russian Academy of Sciences, told journalists.

Although this information turned out to be true, it is still being decided on who gets what and how much. Currently, as I write, this institute has started exploring in the Pechora and the Barents Sea to the mouth of the Lena River, “These are the regions which are now thought to be the largest oil fields.” They have also figured out that two of Russia’s largest companies are actually involved in their own exploration but are not reporting information to the scientists.



Building a pipeline through Tanzania and Uganda

There are plans to build a pipeline between Uganda and Tanzania. Tanzania Petroleum Development Corp, Total E&P Uganda and both of the country’s energy ministries are all involved. The route however has not yet been decided as there are risks involved depending on which direction they take.

“Although Uganda said in August it had agreed to the Kenyan route, it said Nairobi had to guarantee security for the pipeline, along with financing and cheaper fees than alternatives. The Kenyan route raised some industry concerns because it would run in a region in the country's north where security is poor, and near the border with Somalia from where Islamist militants have launched attacks on Kenya.”

Uganda is very keen on building the pipeline on the east side of the African coast so that it will be easier to ship its crude reserves. Uganda stated that it wants to start oil production by 2018. The problem still remains; picking a route through Tanzania could slow some projects in Kenya, which are planned to work right alongside the pipeline.


China becomes interested in the Midstream sector

China has always had an interest in the oil and gas industry but recently, they have had a special interest in the mid-stream oil and gas sector, especially since the sector is one of their weakest.

When it comes to Chinese energy industry, there are three major state owned companies. One is called China National Offshore Oil Company (CNOOC), which is an oil and gas producer, another is called PetroChina, which is another oil producing company, and its third company is Sinopec, which is primarily a refining company.

As you can see, they have all their spots filled in other oil and gas sectors except the midstream. The midstream sector is where the oil and gas produces wells to the refineries, so oil can be turned into liquid fuel.

Despite what the U.S. thought, one of their most objected midstream projects was a pipeline that was built from Iran to Pakistan. China’s reason for the pipeline was so that they would help alleviate Pakistan from energy problems.


ExxonMobils Torrance plant SOLD!

ExxonMobil Corp. is selling its Torrance plant in Southern California. The plant is set on 750 acres and produces almost 2 billion gallons of gas every year. The company to buy is PBF Energy; they are one of the largest independent oil refiners in North America. ExxonMobil has been trying to get rid of the plant since the beginning of last year, but an explosion more than 6 months ago has caused the sale to cease.

The shutdown led to a shortage of gas that meets California's stricter pollution regulations and caused higher prices at the pump for drivers in the state.

PBF Energy states that the plant will begin working again as early as next year.

"I really do believe this is good for PBF and Exxon Mobil, and it's good for California consumers," Kloza said. "Having Exxon Mobil operate a refinery in a state that has declared they want to minimize fossil fuels was ... a bad marriage."

The sale also includes a 116 miles section pipeline that delivers San Joaquin Valley crude to the refinery and pipes that provide access to the Port of Long Beach and Los Angeles. Currently the employees working at the plant will be offered jobs through PBF Energy instead of ExxonMobil.